Kinross Gold Corporation · TSX:K
Kinross Gold — Q1 2018 Earnings Presentation
25 slides from Kinross Gold's earnings presentation, May 9, 2018
Slide 1: First Quarter Results
First Quarter Results May 9, 2018 Delivering Value. Kinross Gold Corporation
Slide 2: Cautionary Statement on Forward-Looking Information
Cautionary Statement on Forward-Looking Information All statements, other than statements of historical fact, contained or incorporated by reference in or made in giving this presentation and responses to questions, including but not limited to any information as to the future performance of Kinross
Slide 3: Strong Operating Results
First Quarter 2018 May 9, 2018 Strong Operating Results Continued track record of meeting or outperforming our operational targets • Strong production and excellent cost performance across portfolio • Achieved lowest all-in sustaining cost since Kinross began reporting the metric in 2012 • Firmly on
Slide 4: Operational Highlights
First Quarter 2018 May 9, 2018 Operational Highlights Bald Mountain, NV Fort Knox, AK Paracatu, Brazil • Record low cost of sales • Excellent cost performance • Strong production • Continued strong • Production in-line with our • Significant improvement in production expectations rainfall year-to-da
Slide 5: Solid Financial Position
First Quarter 2018 May 9, 2018 Solid Financial Position Our balance sheet has strengthened over the two-year construction period for Tasiast Phase One • Approved Phase One with view that balance sheet would be sufficient to fund construction • With bulk of Phase One spending complete, our balance sh
Slide 6: Advancing Our Projects
First Quarter 2018 May 9, 2018 Advancing Our Projects Portfolio of development projects and future opportunities progressing well Tasiast Phase One Round Mountain Phase W Bald Mountain Vantage Complex Nearing completion Engineering ~90% complete Engineering ~90% complete On budget and on schedule to
Slide 7: Strong Balance Sheet & Financial Flexibility
Strong Balance Sheet & Financial Flexibility With strong cash flow and no debt maturities until 2021, we have the financial strength and flexibility to fund our pipeline of development projects 7
Slide 8: Financial Results
First Quarter 2018 May 9, 2018 Financial Results All figures in US$ millions, except ounces, per share and per ounce amounts Q1 2018 Q1 2017 Attributable gold equivalent ounces (oz.)(2) Produced 653,937 671,956 Sold 668,217 645,946 Average realized gold price ($/oz.) $1,330 $1,220 Production cost of
Slide 9: 2018E Production and Costs
First Quarter 2018 May 9, 2018 2018E Production and Costs(1) Forecasting another solid year from operations, with guidance for production and all-in sustaining costs in-line with 2017 Kinross Total(2) Regional Guidance 2018E Unit Costs ($ per gold equivalent ounce) 2.5 million Americas Cost of sales
Slide 10: Fuel & Currency Hedges
First Quarter 2018 May 9, 2018 Fuel & Currency Hedges Managing exposure to fluctuations in foreign currency and input commodity prices • Overall 2018 FX exposures ~36% hedged at favourable rates compared to current spot prices • Continue to monitor our FX and oil exposures and look for opportunities
Slide 11: Solid Financial Position
First Quarter 2018 May 9, 2018 Solid Financial Position Strong position to finance organic development projects with existing cash and liquidity Maintaining Financial Flexibility Liquidity Position • Cash and cash equivalents of ~$1.0 billion • Available credit: $1.6 billion $1.0 • Trailing net debt
Slide 12: Operating Results
Operating Results We remain focused on operational excellence, building a culture of continuous improvement, innovation and disciplined cost management 12
Slide 13: Americas
First Quarter 2018 May 9, 2018 Americas 60% of estimated 2018 gold equivalent production from mines located in the Americas Q1 Results Highlights: • Fort Knox production in-line with expectations, while cost of sales ($/oz.) declined by 15% quarter-over-quarter • Continued strong results at Bald Mou
Slide 14: West Africa
First Quarter 2018 May 9, 2018 West Africa First quarter production and costs in-line with our expectations Q1 Results Highlights: • Tasiast production in-line with expectations • Budgeted 7-day mill shutdown to tie-in Phase One infrastructure • Ramp up of mining rate to 100Mtpa is proceeding on pla
Slide 15: Russia
First Quarter 2018 May 9, 2018 Russia Continued strong performance at Kupol-Dvoinoye, generating strong margins and cash flow Q1 Results Highlights: • Production in-line with expectations • Development of Moroshka continues to advance on plan Expect to begin mining ore in second half of 2018 • Com
Slide 16: Development Projects
Development Projects We have a portfolio of development projects that are progressing, as well as a pipeline of future opportunities that we are focused on advancing 16
Slide 17: Tasiast Phase One
First Quarter 2018 May 9, 2018 Tasiast Phase One On track to achieve throughput of 12,000 t/d by end of June 2018 • Successfully commissioned: Tailings storage facility Upgrades to power supply system Several ancillary systems • Advanced stages of commissioning the new primary crusher • Commis
Slide 18: Tasiast Phase One Nearing Completion
First Quarter 2018 May 9, 2018 Tasiast Phase One Nearing Completion Primary crusher & conveyor Cyclone tower Conveyor & pebble crusher CIL plant 18
Slide 19: Round Mountain Phase W
First Quarter 2018 May 9, 2018 Round Mountain Phase W Phase W construction expected to be complete in Q2 2019 • Detailed engineering now 90% complete • Commenced grading of new heap leach area and earthworks in the new infrastructure area • Commissioned 2 new electric rope shovels • Stripping progre
Slide 20: Bald Mountain Vantage Complex
First Quarter 2018 May 9, 2018 Bald Mountain Vantage Complex Construction of a new heap leach facility and related infrastructure to develop Vantage Complex in the South Area of Bald Mountain • Engineering approximately 90% complete • Earthworks are well underway • Majority of procurement packages a
Slide 21: La Coipa Restart Project
First Quarter 2018 May 9, 2018 La Coipa Restart Project We are evaluating the potential for a return to long-term production in Chile La Coipa Restart Project • Expect to initiate a feasibility study in mid-year • Permitting progressing Remaining two sectoral permits expected in H2 2018 Lobo Marte
Slide 22: Tasiast Update
First Quarter 2018 May 9, 2018 Tasiast Update We are assessing the Government of Mauritania’s request to enter into mutually beneficial discussions respecting all of Kinross’ activities in Mauritania, with a view to improving economic benefits to the country, including the potential impact on Phase
Slide 23: Kinross Today
First Quarter Results Kinross Today • Diverse portfolio of 8 operating mines in 5 countries delivering solid, consistent results Delivered strong Q1 production and cost performance; on track to meet 2018 guidance targets • Balance sheet strength and financial flexibility to invest in our future
Slide 24: Endnotes
First Quarter 2018 May 9, 2018 Endnotes 1) For more information regarding Kinross’ production, cost, overhead expense and capital expenditures outlook for 2018, please refer to the news releases dated February 14, 2018 and May 8, 2018, both of which are available on our website at www.kinross.com. K
Slide 25: Kinross
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